Is it really worth undertaking an MSc in Finance?
The MSc in Finance qualification is officially popular. The number of these courses has proliferated and, with investment banks scaling back their graduate recruitment in recent years, taking time out to gain a better technical grounding in financial sector skills is appealing to more students than ever. But does it actually increase your employability?
In the UK, there are now MScs in Finance (or related subjects) on offer in places like Bath, Birmingham, Bournemouth, Lancaster, Leeds and Newcastle, as well as more established locations like Cass Business School, Cambridge, Oxford, Imperial and the London School of Economics.
The numbers attempting to gain places has swelled. At Cass, for instance, applications have risen by an average of 70% over the last three years, while the LSE received over 1,700 for the 46 positions on its MSc in Finance in 2008.
Still, these courses aren't exactly cheap - coming in at around 23-26k - and it's not guaranteed your earning potential will be increased. Starting salaries for MSc in Finance students hover around 35k, according to various university sources, where as Michael Page's salary survey suggests a graduate trainee analyst in investment banking can earn between 35-38k.
An MSc in Finance is also no guarantee of a place on an investment bank's graduate scheme. Cass tells us that just 25% of the class of 2007-08 (the latest figures available) ended up at an investment bank.
Meanwhile, Martin Diedrich, MSc Finance programme director at Imperial College, London says that although the "vast majority" of students secure roles within financial services, they end up in "finance-related consultancy, asset management firms, insurance, regulators and central banks" as well as investment banking.
Nonetheless, those with an MSc in Finance under their belt have bagged roles within the likes of BNP Paribas, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Merrill Lynch and UBS. Surely, banks must value them to some extent?
Lyle Andrews, head of campus recruitment at UBS, says: "It makes some difference as it demonstrates commitment and an understanding of the industry, but we wouldn't automatically give precedent to an MSc holder over a standard graduate."
Investment banks were unable to provide us with hard figures on the number of graduate recruits who hold an MSc in Finance. However, Derek Walker, director of careers at Oxford University's Saïd Business School and former head of campus recruitment at Barclays Capital, believes it gives you an edge.
"They're a very attractive proposition to an investment bank," he says. "Technically, they are very sharp and already well-entrenched in the fundamentals of finance. It's likely to make your interview experience a lot easier, and will allow you to hit the ground running."
